Daily Exchange Limit of Notes Reduced to Rs. 2000

The Central Government takes several decisions to facilitate farmers, small traders, Group ‘C’ Employees of Central Government including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises in the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes; 

Also decides to reduce the limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-with effect from 18th November, 2016.

In the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes, the Government of India has been receiving several suggestions including those from the State Governments. The Government has considered various suggestions and the following decisions relating to certain operational aspects of this scheme have been taken: 

i. We are now at the beginning of the Rabi season. The farmers need various inputs for their agricultural activities. While the Government is keen on promoting payment through the banking or digital system, it is felt necessary to make some quantum of cash available with farmers to meet various expenses in connection with agricultural operations. It has, therefore, been decided that farmers would be permitted to draw upto Rs. 25000/- per week in cash from their KYC compliant accounts only. These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC). 

ii. Farmers are currently selling their produce from the Kharif season in the APMC markets/mandis. The farmers who receive such payments in their bank accounts through cheque/ RTGS will be permitted to draw up to Rs. 25000/- per week in cash. These accounts will have to be KYC compliant. This facility will enable the farmers to meet their various expenses connected with agriculture. This will also infuse lot of liquidity into the rural sector. 

iii. Traders registered with APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per week in cash from their KYC compliant accounts as in the case of business entities. This will enable these traders to pay wages and facilitate easy loading, unloading and other activities at the mandis. 

iv. For payment of crop insurance premium, States fix time limits depending on their local requirements and conditions. Consequently, the last date for payment expires on different dates. It has now been decided to extend the last date for payment of crop insurance premium by 15 days. 

v. While encouraging families to incur wedding expenses through cheques or digital means, it has been decided to permit families celebrating weddings to draw up to Rs. 2,50,000/- in cash from their own bank accounts. These accounts have to be necessarily KYC compliant. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. This limit of Rs. 2,50,000/- will apply separately to the girl’s family and the boy’s family. The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have to be submitted by the person to the effect that only one person from his/her family is drawing the amount. It is expected that members of the public will fully cooperate to ensure that the above guidelines are adhered to. Any misuse of this facility will invite appropriate action based on the self-declaration and other details. 

vi. At present, over the counter exchange of old Rs. 500/- and Rs. 1000/- notes is limited up to maximum of Rs. 4500/- per person. Reports have been received that the same persons are going back to the counter again and again, thereby cornering the facility and depriving many other people from exchanging old notes. There are also reports of organized groups indulging in such practices to convert their black money into white. It is now expected and desirable that people put their old notes into their bank accounts. However, for convenience of the people who may be on temporary visit either for work or otherwise, it has been decided to reduce this limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. This facility will be available only once per person. The reduced limit of Rs. 2000/- will take effect from 18th November, 2016. 

vii. Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs. 10,000/- in cash. This amount will be adjusted in their salary for November, 2016. It is expected that this decision will ease the pressure on the banks. 

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Calculate Advance Tax, Download Challan and Pay Tax of Last Quarter on or before 15th March-15

Just starts the month of March. All taxpayee known this month is financial year end month.  Therefore Taxpayee wants to pay all due taxes in this month.  An Advance Tax due date for last quarter is 15th March of  non-corporate cases (Non-Company) and Corporate Case (Company) paid Advance Tax today.

Do you Know what is Advance Tax?
Tax payers whose total income is likely to be chargeable to tax for the assessment year are required to pay tax in advance during the financial year (April 1 to March 31) on their estimated current income, which will be assessable to tax during the next following financial year called assessment year. The current income for this purpose means the total income which will be chargeable to tax in the relevant assessment year.

The advance tax payable is the tax on the current income minus the tax deductible at source or collectible out of any income included in the current income.

What are the Due Dates and How to Calculate Advance Tax ?
The following chart helps you to knowing the due dates to pay Advance Tax and its Calculation.

Example:
If the Tax payee pays Gross Total Tax in whole year for A.Y. 2015-16 i.e. Rs. 100000.00 then;

ADVANCE TAX CHART	Gross Income Tax	Rs. 100000.00
For Non Corporate Cases (Non-Company)	Rates	Amount of Tax (Rs.)
15th Sep	30%	30000
15th Dec	30%	30000
15th Mar	40%	40000
For Corporate Cases (Company)	Rates	Amount of Tax (Rs.)
15th June	15%	15000
15th Sep	30%	30000
15th Dec	30%	30000
15th Mar	25%	25000

Free Download Advance Tax Challan.

The Income Tax Challan payment through e-Payment facilitates and payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks.

Easy Procedure to pay Income Tax Payment by " e-payment " :

1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.

2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.

3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.

4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.

5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Calculate Advance Income Tax Liability (Click Here)

SELECT APPLICABLE CHALLAN

CHALLAN NO./ITNS 281 (Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates)

CHALLAN NO./ITNS 280 (payment of Income tax & Corporation Tax)

CHALLAN NO./ITNS 282 (payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax)

CHALLAN NO./ITNS 283 (payment of Banking Cash Transaction Tax and Fringe Benefits Tax)

Know more about e-Tax Payment

For Bank Contact Details Click Here

Select your e-Tax Payment Authorised Banks Click Here

What is e-Tax Payment System ? Click Here

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CBDT Clarification about Interest u/s. 234A on Self Assessment Tax Paid before Due Date.

Recently CBDT clarifies that No Sec. 234A interest on self-assessment tax paid before due date of filing of return on 10th Feb., 2015 by Draft Circular No. 2/2015 which is as under :

SECTION 234A OF THE INCOME-TAX ACT, 1961 - INTEREST FOR DEFAULTS IN FURNISHING RETURN OF INCOME - CHARGEABILITY OF INTEREST UNDER SECTION 264A ON SELF-ASSESSMENT TAX PAID BEFORE DUE DATE OF FILING OF RETURN OF INCOME

DRAFT CIRCULAR NO. 2/2015 [F.NO.385/03/2015-IT(B), DATED 10-2-2015

Interest under section 234A of the Income-tax Act, 1961 (hereinafter the Act) is charged in case of default in furnishing return of income by an assessee. The interest is charged at the specified rate on the amount of tax payable on the total income, as reduced by the amount of advance tax, TDS/TCS, any relief of tax allowed under section 90 and section 90A, any deduction allowed under section 91 and any tax credit allowed in accordance with the provisions of section 115JAA and section 115JD of the Act. Since self-assessment tax is not mentioned as a component of tax to be reduced from the amount on which interest under section 234A of the Act is chargeable, interest is being charged on the amount of self-assessment tax paid by the assessee even before the due date of filing of return.

2. It has been held by the Hon'ble Supreme Court in the case of CIT v. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing of the income-tax return for the relevant assessment year. Accordingly, the present practice of charging interest under section 234A of the Act on self-assessment tax paid before the due date of filing return was reviewed by CBDT.

3. The Board has decided that no interest under section 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing of return of income.

4. This Circular may be brought to the notice of all officers for compliance.

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Delayed advance tax attracts 1% interest every month

December 15 is the deadline for paying the second installment of advance tax.

Those who have an annual tax liability of more than Rs 10,000 are supposed to pay taxes in advance or by way of advance tax. Advance tax should be paid in the year in which the income is received. Hence, it is also known as the "pay-as-you-earn" scheme.

Individual taxpayers need to pay advance tax in three installments through the year - 30 per cent should be paid by September 15, another 30 per cent or 60 per cent of the total liability should be paid by December 15 and the remaining (or the entire liability) amount should be cleared by March 15.

Those who haven't paid the first installment for this financial year or the assessment year 2015-16, can pay it together with the second installment. That is, they can pay 60 per cent of the tax liability on December 15.

"But with interest on the first installment for deferring it by three months," said Suresh Surana of RSM Astute Consulting.

If advance tax is not paid on time, then such taxpayers are levied an interest penalty of one per cent per month under Section 234C.

For instance, if an individual has an advance tax liability of Rs 9,000 by September, but he pays only Rs 5,000, he will be charged one per cent interest Rs 4,000 till September. One can finish off the advance tax payment even between March 15 and 31.

If the tax payment is delayed beyond the financial year, then it will be considered to be default in advance tax payment and an extra interest of one per cent a month will be levied in the next financial year till the time the outstanding is cleared.

Under Section 234B interest at another one per cent is payable for Default in Payment of Advance Tax, that is, if 90 per cent of the tax is not paid before the end of the financial year in which income is received.

Experts says the Income Tax (I-T) department is not very particular about salaried taxpayers paying advance tax as most employers deduct tax at source (TDS). Advance tax is applicable when an individual has sources of income other than his/her salary. For instance, if one is earning through capital gains, interest on investments, lottery, house property or business, the concept becomes relevant. While employers deduct TDS on salaries, advance tax is paid on income that has not been subjected to TDS.

Advance tax could be important for those moving jobs. At times, both employers tend to give tax benefits. This leads to an outstanding due at the time of filing tax returns. Hence, those shifting jobs could opt for paying advance tax.

Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same goes for companies and corporates.

You can pay advance tax using the tax payment challan at the bank branches empanelled with the Income Tax (I-T) department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, and other authorised banks. There are 926 branches in India that can accept advance tax payments. You could also pay it online through the I-T department or the National Securities Depository site. Any rebate due fetches you an interest of 0.5 per cent every month, or, six per cent annually, as in the case of an income tax refund.

Source: www.business-standard.com

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Income Tax Due Dates for month of December - 2014.

Recently, the month "December-2014" starts and this month is very important for Taxpayee and Deductor also.  The assessee can find their obligation toward income tax department through this income tax calendar which is as below:

7 December 2014 - Due date for deposit of Tax deducted/collected for the month of November, 2014

15 December 2014 - Second instalment (in the case of an assessee other than a company) or third instalment (in the case of a company) of advance income-tax for the assessment year 2015-16

Advance tax payment schedules:

Due Date	Amount of Tax
15th September	At least 30% of Tax on total income for the year.
14th December	At least 60% of Tax on total income for the year less advance tax already paid.
15th March	100% of Tax on total income for the year less advance tax already paid.

Advance tax is to be paid on all incomes. Therefore, it is payable on capital gain also. However, as the capital gain can not be estimated in advance, advance tax is paid on all capital gains when they arise in the immediately next advance tax due date.

22 December 2014 - Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of November, 2014

Interest on late payment of Advance Tax:

Interest on late payment of Advance Tax is governed by sections 234 A, 234 B and 234 C.

Interest under section 234A – Default in furnishing the return of Income:

If an assessee has not filed the return of income within the due date, a simple interest @ 1% for every month or part of a month shall be payable. It is calculated from the due date to date of furnishing the return.

Example:

A company files its return on 15th December. Due date of filing return of income is 30th September. Let us assume that the tax payable by the company is Rs.1,00,000. Interest will be calculated as follows:

Tax Liability Rs. 1,00,000/-

Delay = 3 months ie October, November and December.

Interest payable = Rs.1,00,000 X 3%= Rs. 3,000/-

Interest under section 234B- Default in payment of Advance Tax:

If an assessee who is liable to pay advance tax , but not paid the same or or if the advance tax paid by him is less than 90% of the assessed tax, he is liable to pay simple interest at 1% every month or part of a month.

Interest is calculated from April 1st of the next financial year to the date of determination of total income under Section 143 (1). But, if regular assessment u/s. 143 (3) is completed, then interest is charged up to the date of regular assessment.

Interest shall be calculated on the amount equal to the assessed tax in case no advance tax is paid, or on the amount by which the advance tax paid falls short of the assessed tax.

Example:

Mr. X has a tax liability of Rs. 5,00,000/-. TDS Rs. 1,00,000/-

Advance tax payment made by Mr. X for the year is as below:-

15th Sept 2012 Rs. 25,000/-

15th Dec  2012 Rs. 50,000/-

15th Mar  2013 Rs. 25,000/-

Total advance tax paid Rs.1,00,000 /-

Interest u/s 234B is calculated as follows:

Tax on income Rs. 5,00,000

Less TDS         Rs. 1,00,000

                          ------------

Assessed tax     Rs. 4,00,000

90% of assessed tax = 400000 X 90% = Rs. 3,60,000 /-

Advance tax paid by Mr. X - Rs.1,00,000 /-

Since there is a shortfall in payment of advance tax, Sec 234B is attracted.

Shortfall = Rs. 3,60,000– Rs. 1,00,000 = Rs.2,60,000/-

(Shortfall means difference between assessed tax and advance tax paid).

Interest under section 234 B = 260000*1%*4 months (Apr-July) = Rs.10,400 /-

Interest under section 234C

If the advance tax paid is in underestimated instalments or if it s not paid at all, Section 234C gets attracted.

Interest is calculated on the difference between the instalment paid and instalment payable. Rate of interest is @ 1% p.m. for a period of 3 months for every deferment. But, for last instalment on 15th March, interest would be 1% for 1 month only.

Example:

Mr. X gives the following details:

Tax liability on total income Rs. 5,00,000/-

TDS = Rs. 1,00,000

Payment of advance tax:

15 Sept 2012           Rs.  50,000/-

14 Dec  2012           Rs.1,00,000/-

15 Mar  2013           Rs.1,50,000/-

Total advance tax paid Rs.3,00,000/-

Solution:-

Tax liability Rs. 5,00,000

Less TDS Rs. 50,000

Assessed tax Rs.450000 [ 5,00,000 minus 50,000]

Interest u/s 234C is computed as under:

Sept 15

30% of 4,50,000 = 135000 minus 50000 ie; Rs. 85,000 short paid

Interest = 85,000*1% X 3months = 2,550/-

Dec 14

60% of 4,50,000 = 2,70,000 minus 1,50,000/- = Rs. 1,20,000/- paid short.

Interest = 1,20,000*1% X 3months = 3,600/-

15 Mar

100% of 4,50,000 = 450000 minus 3,00,000 = Rs. 1,50,000 /- paid short

1,50,000 X 1% X 1month = Rs. 1500/-

Total Interest payable u/s. 234C is Rs. 2,550+ 3,600+ 1,500 = 7,650/-

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Advance Tax Due Date Extended by 3 Months for Jammu & Kashmir State Taxpayers.

CBDT has published a Press Released on 18th September, 2014 for Date of payment of the September installment of advance tax is extended from 15th September 2014 to 15th December 2014 for the taxpayers in State of Jammu & Kashmir.

The Central Board of Direct Taxes has issued an order to extend the date for payment of second installment of advance tax for companies and first installment of advance tax for others for FY 2014 - 15 (AY 2015 - 16) from 15th September, 2014 to 15th December, 2014 in case of all the tax payers in the State of Jammu and Kashmir.  These taxpayers can now pay their September 2014 installment of advance tax by 15th December, 2014 without entailing any consequential interest for deferment.

Download Advance Tax Due Date Extended Circular (Click Here)

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Paid Today Advance Tax and get relief from unwanted Interest in A.Y. 2015-16

Today is the due date for first installment of advance tax for individuals for financial year 2014-15.  With due date just around the corner, it would be a good idea to take stock of your incomes and pay taxes on time.

What is advance tax?
The concept of advance tax is outlined in Section 208 of the Income-Tax Act, 1961 (‘I-T Act’). Advance tax is a mechanism to pay an individual’s annual tax liability in installments before the specified dates. It is tax paid in advance based on the estimated income likely to be earned in a year.

When does the liability to pay advance tax arise?
 Individuals can have income from multiple sources. In some cases, all taxes would have been deducted and in some partial. The liability to pay advance tax arises when there is a balance tax liability of Rs 10,000, which needs to be still deposited.

Due dates for payment for the current FY14: Advance tax has to be paid in three installments for an individual by the following due dates:

September 15: Installment amount to be paid will be 30 per cent of advance tax due.

December 15: Installment amount to be paid will be 60 per cent of advance tax due.

March 15: Installment amount to be paid will be 100 per cent of advance tax due.

Mechanism of payment of advance tax: Advance tax can be paid by using tax payment challan (Challan no ITNS 280) and submitting it with any bank listed with the income-tax department. Online payment can also be made through the income-tax department or National Securities Depository Limited’s website. At the time of payment, it should be ensured that the challan has been filled with accurate details of the taxpayer.

Advance tax not applicable in some cases: Advance tax provisions are not applicable for senior citizens having income other than income from business or profession or if the tax payable is up to Rs 10,000.

Penalty for non-payment of advance tax: The I-T Act has specific penal provisions for non-payment of advance tax installments.

If during the year an advance tax installment has not been paid or has been paid for a lower percentage than prescribed, an interest of 1 per cent per month will be required to be paid under Section 234C of the IT Act. Also, if advance tax paid is less than 90 per cent during the year then an additional interest of 1 per cent per month is payable under Section 234B of the act for the period beginning April 1, 2014, till the date of deposit.

Relaxation in some cases: Ascertaining salary income, interest income and rental income is possible. However, it may be difficult to estimate income from lotteries, game shows and sale of assets. The I-T Act has special relaxations for such cases. No interest shall be charged for delayed payment of advance tax on such income provided tax is correctly paid in the subsequent installments when the amount has been estimated properly.

To sum up: It is always prudent to start ascertaining your sources of income and tax liability for the current financial year and deposit advance taxes, if any. It is certainly advisable to discharge advance tax within the due date rather than pay interest later on. After all every penny saved is a penny earned.

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Advance Tax Payment Due Date extended to 18.03.2014

Date of Payment of the March Instalment of Advance Tax Extended from 15th March 2014 to 18th March 2014

The final instalment of Advance tax for Financial Year 2013-14 is required to be paid on or before 15th March, 2014 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are open for half day on 15th March, 2014, being a Saturday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial Year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th March, 2014 to 18th March, 2014. Taxpayers, therefore, can now pay their advance tax instalment by 18th March, 2014 without entailing any consequential interest for deferment.

How to Pay Advance Income Tax? (Click Here)

Calculate Your Advance Tax Liability (Click Here)

Free Download Advance & Self Asstt. Tax (Click Here)

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What are the effect when Income Tax Return filing after due date ?

Income Tax Return filing after due date

Interest u/s 234A:If there is tax due after deducting advance tax ,TDS and self assessment tax then interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return

Loss of Interest on refund:

You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.

Audit Report:
Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2011.Audit repot is only to be prepared and not to be filed any where. In simple word or boldly we can say that if audit report has been signed before 30.09.2011 that is enough, you can file return late and report particulars will be filled when ever you filed your income tax return. This is as income tax circular no 5/2007 point no 6

Revised return :

Late /belated return can not be revised .

Some of deductions under subsection 80 are not available for late return.

Due date of income tax return is related to TDS deposit and disallowance u/s 40a(ia).

Due date of Income Tax return is related to tax saving u/s 54,54B,54F and some other issues in capital gain saving account deposit scheme.

Not able to carry forward the losses under various heads:

You are not able to carry forward following type of losses if file return after due date

• Speculation loss business loss excluding loss due to unabsorbed depreciation and capital exp on scientific research
• short term capital loss
• long term capital loss
• loss due to owning and maint. of horse races

However there is no impact on following type of losses even if return is furnished after the due date

• loss from house property
• business loss on account of unabsorbed depreciation and capital expenditure on scientific research.

(though delay can be condoned as per circular 8/2001 DT 16.5.2001 on fulfilling of certain condition) so if you are falls under the ambit of the above points then you should furnish your return up to 31.07.2011or 30.09.2011 as the case may be without any penalty.

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2nd Instalment Advance Tax Date Extend to 17th December, 2013 for all Assessees.

The CBDT has issued an order  vide file no F. No.385/8/2013-IT(B) dated 13/12 2013 regarding 2nd Installment payment of Advance Tax date for the Asstt. Year 2014-15 extended from 15th December 2013 to 17th December 2013 for all the assessees, Corporate and other than Corporates. Read the order u/s 119 which is as under :

F. No.385/8/2013-IT(B)

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes

North Block, IT-Budget Division New Delhi, the 13th December, 2013

Order under Section 119(2)(a) of the Income-tax Act. 1961

    In exercise of power conferred under sec 119 (2) (a) of the Income-tax Act, 1961, the Central Board of Direct Taxes has decided to extend the last date of payment of the December Quarter Instalment of Advance Tax for the Financial year 2013-14, from 15th December 2013 to 17th December 2013 for all the assessees, Corporate and other than Corporates.

(Sandeep Singh)

Under Secretary to the Government of India

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Pay 2nd Instalment of Advance Tax on or before 15th December.

If the Income Tax Liability of any assessee is more than Rs. 10,000 in a financial year, then he is liable to pay such tax in instalments during the year itself rather than paying this tax at the end of the year. This tax which is payable during the year is called “Advance Tax” or “pay as you earn tax” as tax is liable to be paid at the time the income is earned i.e. during the year rather than paying this tax at the end of the year. If Advance Tax is not paid in full for installments falling due on 15th March, interest at the rate of 1% on the short amount for 1 month is to be paid. If the payment of the last instalment in March is delayed by even a day, interest is to be paid on the entire instalment amount.  If you do not pay advance tax at all or if the aggregate paid by March 31 is less than 90 per cent of the total tax payable, you will have to pay an interest of 1 per cent per month on the deficit amount from April 1 of the following year till the date you file your return.

Advance tax payment schedules:

Due Date	Amount of Tax
15th September	At least 30% of Tax on total income for the year.
14th December	At least 60% of Tax on total income for the year less advance tax already paid.
15th March	100% of Tax on total income for the year less advance tax already paid.

Advance tax is to be paid on all incomes. Therefore, it is payable on capital gain also. However, as the capital gain can not be estimated in advance, advance tax is paid on all capital gains when they arise in the immediately next advance tax due date.

Interest on late payment of Advance Tax:
Interest on late payment of Advance Tax is governed by sections 234 A, 234 B and 234 C.

Interest under section 234A – Default in furnishing the return of Income:
If an assessee has not filed the return of income within the due date, a simple interest @ 1% for every month or part of a month shall be payable. It is calculated from the due date to date of furnishing the return.

Example:
A company files its return on 15th December. Due date of filing return of income is 30th September. Let us assume that the tax payable by the company is Rs.1,00,000. Interest will be calculated as follows:

Tax Liability Rs. 1,00,000/-

Delay = 3 months ie October, November and December.

Interest payable = Rs.1,00,000 X 3%= Rs. 3,000/-

Interest under section 234B- Default in payment of Advance Tax:
If an assessee who is liable to pay advance tax , but not paid the same or or if the advance tax paid by him is less than 90% of the assessed tax, he is liable to pay simple interest at 1% every month or part of a month.

Interest is calculated from April 1st of the next financial year to the date of determination of total income under Section 143 (1). But, if regular assessment u/s. 143 (3) is completed, then interest is charged up to the date of regular assessment.

Interest shall be calculated on the amount equal to the assessed tax in case no advance tax is paid, or on the amount by which the advance tax paid falls short of the assessed tax.

Example:
Mr. X has a tax liability of Rs. 5,00,000/-. TDS Rs. 1,00,000/-
Advance tax payment made by Mr. X for the year is as below:-
15th Sept 2012 Rs. 25,000/-
15th Dec  2012 Rs. 50,000/-
15th Mar  2013 Rs. 25,000/-

Total advance tax paid Rs.1,00,000 /-

Interest u/s 234B is calculated as follows:
Tax on income Rs. 5,00,000
Less TDS         Rs. 1,00,000
                          ------------
Assessed tax     Rs. 4,00,000

90% of assessed tax = 400000 X 90% = Rs. 3,60,000 /-

Advance tax paid by Mr. X - Rs.1,00,000 /-

Since there is a shortfall in payment of advance tax, Sec 234B is attracted.

Shortfall = Rs. 3,60,000– Rs. 1,00,000 = Rs.2,60,000/-
(Shortfall means difference between assessed tax and advance tax paid).

Interest under section 234 B = 260000*1%*4 months (Apr-July) = Rs.10,400 /-

Interest under section 234C
If the advance tax paid is in underestimated instalments or if it s not paid at all, Section 234C gets attracted.

Interest is calculated on the difference between the instalment paid and instalment payable. Rate of interest is @ 1% p.m. for a period of 3 months for every deferment. But, for last instalment on 15th March, interest would be 1% for 1 month only.

Example:
Mr. X gives the following details:
Tax liability on total income Rs. 5,00,000/-
TDS = Rs. 1,00,000
Payment of advance tax:
15 Sept 2012           Rs.  50,000/-
14 Dec  2012           Rs.1,00,000/-
15 Mar  2013           Rs.1,50,000/-
Total advance tax paid Rs.3,00,000/-

Solution:-
Tax liability Rs. 5,00,000
Less TDS Rs. 50,000
Assessed tax Rs.450000 [ 5,00,000 minus 50,000]

Interest u/s 234C is computed as under:

Sept 15
30% of 4,50,000 = 135000 minus 50000 ie; Rs. 85,000 short paid
Interest = 85,000*1% X 3months = 2,550/-

Dec 14
60% of 4,50,000 = 2,70,000 minus 1,50,000/- = Rs. 1,20,000/- paid short.
Interest = 1,20,000*1% X 3months = 3,600/-

15 Mar
100% of 4,50,000 = 450000 minus 3,00,000 = Rs. 1,50,000 /- paid short
1,50,000 X 1% X 1month = Rs. 1500/-
Total Interest payable u/s. 234C is Rs. 2,550+ 3,600+ 1,500 = 7,650/-

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How to pay Advance Tax for Asstt. Year 2014-15?

PAYMENT OF ADVANCE

U/S. 207, 208, 209, 210 AND 211 OF THE INCOME TAX ACT, 1961

 

Payment of advance tax is governed by sec. 207,208,209,210 and 211 of the Income Tax Act 1961.

Payment of Advance Tax is also known as ‘pay tax as and when you earn’. As per the provision, tax payable on income of a previous year is to be fully paid with in the previous year itself. One can not defer the tax payment to the assessment year. The Advance tax liability arises only to those assesses whose tax liability for the previous year is Rs. 10,000/- or more.

Advance tax helps Govt. to receive constant tax receipt throughout the year.  Advance tax is to be paid by all assesses before filing the Income Tax Return.

For individuals who have only salary income, advance tax payment would be taken care by the TDS made by the employer. The details of TDS will be specified in Form 16 issued to the employee.

Advance tax payment schedules:

Due Date	Amount of Tax
15th September	At least 30% of Tax on total income for the year.
14th December	At least 60% of Tax on total income for the year less advance tax already paid.
15th March	100% of Tax on total income for the year less advance tax already paid.

Advance tax is to be paid on all incomes. Therefore, it is payable on capital gain also. However, as the capital gain can not be estimated in advance, advance tax is paid on all capital gains when they arise in the immediately next advance tax due date.

Interest on late payment of Advance Tax:
Interest on late payment of Advance Tax is governed by sections 234 A, 234 B and 234 C.

Interest under section 234A – Default in furnishing the return of Income:
If an assessee has not filed the return of income within the due date, a simple interest @ 1% for every month or part of a month shall be payable. It is calculated from the due date to date of furnishing the return.

Example:
A company files its return on 15th December. Due date of filing return of income is 30th September. Let us assume that the tax payable by the company is Rs.1,00,000. Interest will be calculated as follows:

Tax Liability Rs. 1,00,000/-

Delay = 3 months ie October, November and December.

Interest payable = Rs.1,00,000 X 3%= Rs. 3,000/-

Interest under section 234B- Default in payment of Advance Tax:
If an assessee who is liable to pay advance tax , but not paid the same or or if the advance tax paid by him is less than 90% of the assessed tax, he is liable to pay simple interest at 1% every month or part of a month.

Interest is calculated from April 1st of the next financial year to the date of determination of total income under Section 143 (1). But, if regular assessment u/s. 143 (3) is completed, then interest is charged up to the date of regular assessment.

Interest shall be calculated on the amount equal to the assessed tax in case no advance tax is paid, or on the amount by which the advance tax paid falls short of the assessed tax.

Example:
Mr. X has a tax liability of Rs. 5,00,000/-. TDS Rs. 1,00,000/-
Advance tax payment made by Mr. X for the year is as below:-
15th Sept 2012 Rs. 25,000/-
15th Dec  2012 Rs. 50,000/-
15th Mar  2013 Rs. 25,000/-

Total advance tax paid Rs.1,00,000 /-

Interest u/s 234B is calculated as follows:
Tax on income Rs. 5,00,000
Less TDS         Rs. 1,00,000
                          ------------
Assessed tax     Rs. 4,00,000

90% of assessed tax = 400000 X 90% = Rs. 3,60,000 /-

Advance tax paid by Mr. X - Rs.1,00,000 /-

Since there is a shortfall in payment of advance tax, Sec 234B is attracted.

Shortfall = Rs. 3,60,000– Rs. 1,00,000 = Rs.2,60,000/-
(Shortfall means difference between assessed tax and advance tax paid).

Interest under section 234 B = 260000*1%*4 months (Apr-July) = Rs.10,400 /-

Interest under section 234C
If the advance tax paid is in underestimated instalments or if it s not paid at all, Section 234C gets attracted.

Interest is calculated on the difference between the instalment paid and instalment payable. Rate of interest is @ 1% p.m. for a period of 3 months for every deferment. But, for last instalment on 15th March, interest would be 1% for 1 month only.

Example:
Mr. X gives the following details:
Tax liability on total income Rs. 5,00,000/-
TDS = Rs. 1,00,000
Payment of advance tax:
15 Sept 2012           Rs.  50,000/-
14 Dec  2012           Rs.1,00,000/-
15 Mar  2013           Rs.1,50,000/-
Total advance tax paid Rs.3,00,000/-

Solution:-
Tax liability Rs. 5,00,000
Less TDS Rs. 50,000
Assessed tax Rs.450000 [ 5,00,000 minus 50,000]

Interest u/s 234C is computed as under:

Sept 15
30% of 4,50,000 = 135000 minus 50000 ie; Rs. 85,000 short paid
Interest = 85,000*1% X 3months = 2,550/-

Dec 14
60% of 4,50,000 = 2,70,000 minus 1,50,000/- = Rs. 1,20,000/- paid short.
Interest = 1,20,000*1% X 3months = 3,600/-

15 Mar
100% of 4,50,000 = 450000 minus 3,00,000 = Rs. 1,50,000 /- paid short
1,50,000 X 1% X 1month = Rs. 1500/-
Total Interest payable u/s. 234C is Rs. 2,550+ 3,600+ 1,500 = 7,650/-

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Banks to remain open upto 16.09.2013 to deposit Advance Tax.

Tax is paid in advance when the liability of advance tax is Rs.5, 000 or more. The provisions of advance tax are applicable on all types of persons irrespective of the residential status of the person. The advance tax is paid in the previous year itself. Thus, the tax is paid in the year of earning of income, in other words the earning of income and payment of tax goes simultaneously. Thus, the tax is paid as income is earned. This scheme of advance payment of tax is also called pay as you earn scheme, i.e., pay tax as you earn income.

CBDT PRESS RELEASE, DATED 12-9-2013
It is informed that the payment of Quarterly Advance Tax on or before 15th September, 2013 by the tax payers is a statutory requirement. All such tax payers who are liable to pay advance tax must make payments in the designated branches of the banks authorized to accept tax payments.

2. All such designated branches of authorized banks have been asked to function on 14th and 15th September, 2013 (Saturday & Sunday) to accept advance tax payments. If any tax payer fails to pay the advance tax on 14th/15th September, 2013, he can make the payment even on 16th September, 2013. - www.pib.nic.in

DATES OF PAYMENT OF ADVANCE TAX
Advance tax is paid by the all persons, both corporate assessee (company assessee) and non-corporate assessee (other than non-corporate assessee). The advance tax is to be paid in the following installments on the following dates:

For Non-Corporate Assessee
Due Dates                             Amount of Tax payable
On or before 15 September - not less than 30% of tax payable
On or before 15 December  - not less than 60% of tax payable
On or before 15 March        - not lessthan 100% of tax payable

For Corporate Assessee
Due Dates                             Amount of Tax payable
On or before 15 June           - not less than15% of tax payable
On or before 15 September - not less than 30% of tax payable
On or before 15 December - not less than 60% of tax payable
On or before 15 March       - not lessthan 100% of tax payable

Since, the actual tax and actual income can be computed only after completion of the year therefore, the income is estimated at different due dates mentioned above. The tax on such estimated income is computed and percentage of the tax as mentioned above is payable by the assessee at different due dates.

Activity A : State whether Mr. X is liable to pay advance tax and if yes then what amount should be paid by what date. The income of Mr. X is Rs. 2, 00,000.
Solution: The tax is Rs. 15,300 on income of Rs. 2, 00,000. Since, tax is more than Rs. 5,000, therefore, advance tax is payable.
The advance tax is payable as under:
Since Mr. X is a non-corporate assessee therefore, the first installment will be due on 15th September.
Date installment total tax paid
On or before 15th September - first 30% of Rs. 15,300       = Rs. 4,590
On or before 15th December  - next 30% of Rs. 15,300      = Rs. 4,590
On or before 15th September - balance 40% of Rs. 15,300 = Rs. 6,120
                                                                                                 Rs.15,300

All persons whose tax liability is Rs. 5,000 or more pay advance tax. Advance payment of tax is made in installments. The first installment is paid on 15th June by corporate assessee while non-corporate assessee pays the first installment on 15th September. The whole of advance tax is paid by 15th March by both corporate and non-corporate assessee. The payment of advance tax is thus made in the previous year itself and therefore, it helps government to speed up payment of tax and earn interest on it. Since advance tax is paid simultaneous to earning of income therefore the scheme of advance payment of tax is also known as pay as you earn scheme.

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First Installment of Advance Tax must be paid before 15th September.

The due date for first installment of advance tax for individuals for financial year 2013-14 is September 15. With due date just around the corner, it would be a good idea to take stock of your incomes and pay taxes on time.

What is advance tax? The concept of advance tax is outlined in Section 208 of the Income-Tax Act, 1961 (‘I-T Act’). Advance tax is a mechanism to pay an individual’s annual tax liability in installments before the specified dates. It is tax paid in advance based on the estimated income likely to be earned in a year.

When does the liability to pay advance tax arise? Individuals can have income from multiple sources. In some cases, all taxes would have been deducted and in some partial. The liability to pay advance tax arises when there is a balance tax liability of Rs 10,000, which needs to be still deposited.

Due dates for payment for the current FY14: Advance tax has to be paid in three installments for an individual by the following due dates:

September 15: Installment amount to be paid will be 30 per cent of advance tax due.

December 15: Installment amount to be paid will be 60 per cent of advance tax due.

March 15: Installment amount to be paid will be 100 per cent of advance tax due.

Mechanism of payment of advance tax: Advance tax can be paid by using tax payment challan (Challan no ITNS 280) and submitting it with any bank listed with the income-tax department. Online payment can also be made through the income-tax department or National Securities Depository Limited’s website. At the time of payment, it should be ensured that the challan has been filled with accurate details of the taxpayer.

Advance tax not applicable in some cases: Advance tax provisions are not applicable for senior citizens having income other than income from business or profession or if the tax payable is up to Rs 10,000.

Penalty for non-payment of advance tax: The I-T Act has specific penal provisions for non-payment of advance tax installments.

If during the year an advance tax installment has not been paid or has been paid for a lower percentage than prescribed, an interest of 1 per cent per month will be required to be paid under Section 234C of the IT Act. Also, if advance tax paid is less than 90 per cent during the year then an additional interest of 1 per cent per month is payable under Section 234B of the act for the period beginning April 1, 2014, till the date of deposit.

Relaxation in some cases: Ascertaining salary income, interest income and rental income is possible. However, it may be difficult to estimate income from lotteries, game shows and sale of assets. The I-T Act has special relaxations for such cases. No interest shall be charged for delayed payment of advance tax on such income provided tax is correctly paid in the subsequent installments when the amount has been estimated properly.

To sum up: It is always prudent to start ascertaining your sources of income and tax liability for the current financial year and deposit advance taxes, if any. It is certainly advisable to discharge advance tax within the due date rather than pay interest later on. After all every penny saved is a penny earned.

Source: www.mydigitalfc.com

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Advance Tax Last Payment on or Before 15th March.

Advance tax -  15th March Last Payment

The provisions of advance tax are applicable on all types of persons irrespective of the residential status of the person. Advance Tax is payable only if net tax payable on Income of the full Financial year is Rs 10000 or more.if Tax payable is less than Rs 10000 then no Advance tax is payable.Surcharge, education and higher education cess should also be considered while calculating the advance tax liability. Advance tax is required to be paid by the all persons, both corporate assessee (company assessee) and non-corporate assessee (other than non-corporate assessee). The advance tax is to be paid in the following installments on the following dates:



What are the Due Dates and How to Calculate Advance Tax ?
The following chart helps you to knowing the due dates to pay Advance Tax and its Calculation.

Example:
If the Tax payee pays Gross Total Tax in whole year for A.Y. 2013-14 i.e. Rs. 100000.00 then;

ADVANCE TAX CHART	Gross Income Tax	Rs. 100000.00
For Non Corporate Cases (Non-Company)	Rates	Amount of Tax (Rs.)
15th Sep	30%	30000
15th Dec	30%	30000
15th Mar	40%	40000
For Corporate Cases (Company)	Rates	Amount of Tax (Rs.)
15th June	15%	15000
15th Sep	30%	30000
15th Dec	30%	30000
15th Mar	25%	25000

Free Download Advance Tax Challan.

The Income Tax Challan payment through e-Payment facilitates and payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks.

Easy Procedure to pay Income Tax Payment by " e-payment " :

1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.

2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.

3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.

4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.

5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

SELECT APPLICABLE CHALLAN

CHALLAN NO./ITNS 281 (Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates)
CHALLAN NO./ITNS 280 (payment of Income tax & Corporation Tax)
CHALLAN NO./ITNS 282 (payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax)
CHALLAN NO./ITNS 283 (payment of Banking Cash Transaction Tax and Fringe Benefits Tax)

Know more about e-Tax Payment

For Bank Contact Details Click Here

Select your e-Tax Payment Authorised Banks Click Here

What is e-Tax Payment System ? Click Here

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Calculate your Tax Liability in Financial Year 2013-14 and Income Tax Slab for Asstt. Year 2014-15

Every Employee watching towards Union Budget-2013 and all are very disappointing with it.  Thereafter  Salaried Employee want to calculate Tax Liability for Asstt. Year 2014-15 from March-2013. Finance Minister was declared the Income Tax slab for Assessment Year 2014-15. On the basis of current Income Tax Slab salaried employee calculate Income Tax which is deduct from salary of March-13 as TDS.

Calculate your Tax Liability in Financial Year 2013-14

Download Tax Liability Utility for Asstt. Year 2014-15

I. In case of individual (other than II and III below) and HUF
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

• Education Cess: 3% of the Income-tax.
• New Rs 50,000 tax exemption for retail equity investments
• Sale of residential property exempt from Capital Gains tax if invested in equity or equipment of an SME.
• Implementation of Direct Tax Code (DTC) deferred. GST to be operational by August 2012.
• Surcharge of 10% on income more than Rs. 1 crore
• Tax credit of Rs.2000 for annual income of Rs. 5 lakh
• Home Loan Income tax Exemption limit increased from Rs.1.5 lakhs to Rs.2.5 lakhs for loan up to Rs.25 lakhs
• Rajiv Gandhi Equity Savings Scheme extended to mutual funds.
• Rajiv Gandhi Equity Savings Scheme to be liberlised.
• Rajiv Gandhi Equity Savings Scheme limit increased.

Download Tax Calculator For. A. Y. 2013-15  (Click Here)
Form 16 Utility Free Download (Click Here)

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